Which of the Following Would Be a Benefit to a Franchiser

question 2

Multiple Choice

Which of the following would be a benefit to a franchiser, such as Pep Boys, in expanding into international marketing?

• A)There are no risks involved with allowing a foreign franchisee.
• B)The franchiser does not have to put up a large capital investment.
• C)The franchiser does not have to share its name or operational procedures.
• D)The franchisee only pays a set fee every month to the franchiser.
• E)An equal partnership is formed between the franchiser and franchisee.

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Definitions:

Prior Period Adjustments

Prior period adjustments are corrections made to an entity's reported financial information to amend errors or omissions from previous reporting periods.

Income Tax Effects

The impact of tax policies and rates on the income of individuals and businesses, affecting net income and financial planning.

Statement of Retained Earnings

A financial statement that outlines the changes in retained earnings for a specific period, including net income earned or loss and dividends paid.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.